How do you manage meal expenses and what proof should you accept?
On today's menu, everything you need to know about meal receipts, with a focus on meal receipts!
Why? Because in 2018, of the average €2,456 declared in expense reports by French employees (source: Expensya - 2019), catering came second with €627, just behind transport (€671).
These are substantial expenses that require precise management and supervision.
Are you an employee, a volunteer or a manager who has to advance money because you're on a business trip or are inviting a client to lunch? You have rights and duties when it comes to your business expenses.
Are you in charge of payroll or accounting? No more time-consuming expense reports piling up on your desk!
We'd like to remind you of the basic principles and regulations: what a meal voucher should look like, which documents are acceptable and how to manage them.
As with any financial issue, clear rules, good internal communication and rapid processing of reimbursements (or refusals) are the keys to good working relationships and satisfied teams.
Meal expenses: the rules
Does your company reimburse expenses on an actual basis, as opposed to the flat-rate system used for certain professions with recurring expenses?
In this case, where expenses are more occasional, actual reimbursement involves the use of an expense report.
This enables the employee to identify and be reimbursed, within reasonable limits, for catering expenses incurred in the employer's interest.
Whether you're a manager or an employee, alone or with clients, at work or on a business trip, there are rules to prevent abuse.
This is where the definition of an expense policy comes in handy: it saves the manager having to repeat reimbursement conditions, and ensures smooth, transparent communication.
What should a meal expense report look like?
The document summarizes the nature of the expenses incurred, their amounts, the date, and is accompanied by the required supporting documents.
There are no surprises here: the meal expense report is accompanied by a meal expense report receipt.
When are expenses not reimbursed?
The reimbursement of professional expenses is an obligation for the employer, even if it is not written into the contract: this is referred to as a "clause réputée non-écrite".
However, the issuer of the expense claim is obliged to provide proof of the expense, within the allotted timeframe, if the latter has been clearly defined and communicated internally.
After this deadline, and in the absence of justification, the expense claim may be rejected.
What meal receipts are accepted?
We always think of the restaurant bill, but can we provide a supermarket receipt, for example? Is a credit card receipt acceptable?
But before we look at the accepted receipts, why are they so important?
Objectives of meal receipts
There are several issues here:
- They make it possible to verify the correctness of the expenditure, carried out in the interests of the company;
- They protect the company vis-à-vis the Urssaf in the event of an audit;
- They enable deductible VAT on meal expenses to be reclaimed.
🤓 Good to know: always provide the original receipt, preferably a receipt showing the method of payment.
Unless it is dematerialized in conditions guaranteeing its compliance in the eyes of the law.
Restaurant expense receipts
If you are inviting customers, prospects or employees to a business meal, your receipt must show :
- the date,
- the amount of the restaurant bill,
- number of covers,
- the name, position and company of guests (on the back of the bill, above €150),
- the reason for the invitation (also on the back),
- VAT.
If this information is not provided, the company is liable to penalties from the Urssaf, including a fine for insufficient justification, and the expense may be reclassified as a benefit in kind.
On the other hand, if you're out and about and need to eat on the spot, the standard receipt will suffice.
☝️ Restaurant expense reports and ceilings: to reduce the risk of fraud, improve control over expenses and comply with tax regulations, employers may impose a ceiling, set out in the company agreement or contract.
In any case, actual reimbursements are exempt from social security charges as long as the expenses are deemed reasonable.
This is not the case for flat-rate reimbursements, such as meal allowances for travel, which must comply with a ceiling imposed by the tax authorities.
How much does a packed lunch cost? Discover the Urssaf scale for meal expenses.
Proof of supermarket expenses
A till receipt is accepted, as is a receipt from a bakery, if it only concerns the employee.
Expense report and credit card receipt
Sometimes an invoice is forgotten or lost.
Some companies exceptionally accept credit card receipts, despite the risk of a tax reassessment, because they are not detailed enough.
How do I manage meal receipts?
Handling meal vouchers is an integral part of corporate expense management, and it goes without saying that this task, which falls to the CFO, is becoming increasingly difficult to manage in the current economic crisis.
Define the company's spending policy
Whether posted in common areas or integrated into the welcome booklet, for example, it avoids any grey areas in terms of what is accepted, acceptable and prohibited.
That's why it's so important to have a clear, precise spending policy that's accessible to everyone.
Not only does the manager control the company's cash flow and encourage good habits, but employees are well informed and reassured.
To optimize expense management, the expense policy summarizes :
- reimbursable expenses and maximum limits (particularly for alcohol),
- the contact person in charge of managing expense claims,
- the process: procedures for receiving and validating receipts, and reimbursement deadlines.
Respect a reasonable reimbursement deadline
Is there a legal deadline for reimbursing expenses?
The law is not strict on this subject. But it seems obvious that reimbursement must be made within a reasonable timeframe, after receipt of documents and receipts, to avoid putting the employee in an uncomfortable situation and fostering resentment.
In most cases, the person in charge of accounting or payroll will reimburse meal expenses from the next salary.
Reclaim VAT on meal expenses
The company can exercise its right to deduct and declare VAT provided that :
- it is itself subject to VAT ;
- the receipt indicates the amount.
Be picky
Watch out for false restaurant bills!
It can happen that an employee is invited to lunch, but gets the bill back in order to be reimbursed. Be vigilant.
Use software to save time and improve fluidity
Practical tools exist to relieve the burden on both administrative and field teams.
In the cloud, they have the advantage of being up to date on regulations and usable on the move, for a streamlined processing and validation circuit, in real time.
What's more, they enable you to dematerialize your expense reports, including receipts, thanks to OCR technology, which detects the characters on your tickets from a simple photo and transfers them to the application, thus avoiding re-typing and document loss.
Here are four examples:
Expensya, smooth and simple expense management processes
With Expensya, every company (VSE, SME, large group) or freelancer has an intuitive tool for smoothly managing expense claim procedures.
OCR+ technology transforms your receipt into an URSSAF-compliant digital expense claim, and even handles tips. Then, with just a few clicks, you can send it to your manager or accountant, who are instantly notified.
And best of all, your receipts are digitally archived until the end of the legal retention period.
Silae Expense, artificial intelligence at the service of your autonomy
Silae Expense stands out for its artificial intelligence, which enables the tool to be improved by learning from the specific practices of different company users.
Its OCR technology was developed in-house, and its digital safe option guarantees the probative value of the supporting documents supplied in the event of an audit.
You can connect it to your global management software, such as your ERP.
Kizeo Forms, the mobile application for creating customized forms
Kizeo Forms helps companies make the transition to paperless expense management, while maintaining consistent documentation across all industries.
The benefits of Kizeo Forms include :
- standardization and parameterization of claim forms by your administrative teams,
- automatic entry and dispatch of expense claims from the field to the right contact(s), with all information and photos of receipts.
Rydoo, your travel and expense policy at the heart of the tool
With Rydoo, you can integrate your expense policy into the tool: expenses, if they comply with it, are automatically validated, thanks to the definition of ceilings for example.
Rydoo Expense manages classic expense reports, while Rydoo Travel optimizes business travel management: there are no expense advances to make.
The tool can also be interconnected with your management and collaboration solutions.
Spendesk dematerializes and modernizes expense management
Digitalize 100% of your expense claim process with Spendesk. Employees submit their expense claims quickly and easily via the application. Expenses are centralized in a single interface, giving you global visibility in real time. This enables you to validate them in just a few clicks, as do reimbursements and bank reconciliations, which are then carried out automatically.
Don't pay for time-consuming management
Expense → claim → control → validation → reimbursement...
This simplified diagram doesn't even take into account refusals or reminders due to missing documents.
Adopt a software solution! Software solutions herald the end of receipts piling up, gathering dust, getting lost or even fading over time.
They simplify the process, from request to approval, and make your documents more secure.
What's more, you can monitor your cash flow and expense trends to adjust your expense management and better anticipate future needs.
What value-added task will you devote all this time to?